Show MONEY IN GOOD WAY Advance In Iii English Mon Money ey Affecting U S Gold Supply By fly ROS Special Correspondent of oC o 1 Abe be nd rl Copyright 1924 1 24 by The Tb Co Coi Coi Pre Press Association O NEWYORK YORK W-YORK Aug Aur 9 In In a w ek e ek 1 with Interesting from nn an investment standpoint there thero was w as nothing more inor significant than ban the tho th advance 1 In sterling e chance ex-chance change to a 3 new high re record ord for forthe forthe the year Primarily of of 0 this anca ad represented specula specula- specula ill the based baaed on the tho favora e outlook of ot the allied conference In London The importance to our 0 n financial position ho e eer er goes a to great deal further urther lor l'or some time tim now thero there has hILS been 11 IL tead withdrawal ot- ot funds front fron he New cw York market seeking mol moi 1 1 employment ment abroad and andIc II Ic Is this phase of ot the mattel hl h I mal ds the close L l attention A Is well ell known our banking stem saten 18 In Ih the strongest position in Its hIstory holding as it does docs mOl mote e ehan than han half halt the th orld worlds orld s B supply of sold GOld It is upon this excess ot of o the ellow ellOn metal metai that the present e C e ca e in m money rates I F founded and this east In money lu in turn Is i 1 responsible je pon in a large lare de- de degree degree de decree gree cree tot 01 the tho th strength in indus indus- Indu trial C j DV k CES t The Tho Question no now no arises heth r the ad In sterling and the shifting of balances will wJ 00 far enough to make maJe mak an Impre- Impre Ion ion upon our gold told supply In III Inthe the nature of ot the th case no e eat a t answer can be b given riven Economists Economist agree that a 3 a turn in the tide of gold w d which Is la still sun corning comIng In ho e altogether but If 1 the immediate is a n tightening of mOlley rates It would remo e th chief prop from the th Jm market and the market marJet mark t of ot the th fu- fu future f tur tu-tur u ture 15 1 I entirely dependent upon lie he trade situation Thel e 0 Is 1 some e son to believe that the directors n of the New York Federal Reserve bank were Influenced In their lr tIe tIe- tIeI de isbn I on Thursday to cut the th ro- ro rediscount re rediscount discount rate rat rom 3 2 1 to 3 Pt PI cent by a 3 a desire to help along alone th Ih th of o sterling terling exchange The mai et howe er hU has still till to reckon r ckon with BrUl lemand which at this ea season ceason on fn- fn ol es y heay hea y demands den for dollas lv bv BrItish Importers of or ian Ow materials The Tir also at ate e under the necessity nece ot of o accum- accum u accum-u u dollars for tor pa pa-ment of or In- In InI W In-W ei I et e t on th the 1 debt to the th Unit Unit- United United United ed States Statu fh These e Influences Uv cause cau I a In How far tar these causes 1111 be 0 by br the th great great- T fi at-fi PI CL ie e attractiveness of money J ales In London I ondon and by bv the pur- pur liate of o foreign securities by Am- Am American Am American stor remains to be seen spen senIt It H Is on this account that the course coure 01 exchange during th tho next 30 dais s s nill hs be b 10 so closely by those interested In tore tore- foro the future of ot the th American In market marketT i T BONDS RISE RIer RISEs s s hI fir ir as the action ot of the Ne 1011 r Te deral eral c bank directors tors goes poes Ioe tIle the th only surprise w 45 that hat the cut in the interest rao I Iante ante ame when nhen hen it did Action of this thuI I md ind had been expected more mor 01 les le confidently for nearly a monti mont montis s 5 a matter of o tact fact It does docs doe not 1 liance bange the Hie money situation at all It H Is simply official recognition ot of a condition which everybody lne existed It had no lIm lus upon the th bond market to bring about recovery In Hbert s to around the best prices o 0 the tho year High grade rade crad rails rail and comparable In rating to In legal lecal for sa saIng Ing banks did not Improve In market price On the contrary holders seem eem toh to eto ho h more Influenced by the e desI to exchange securities of ot this grade grado for fOI something that would give them thema a little higher return Along Alone with the tb rise riso In th thc tho eX- eX ex-chanse ex changes the week ek has ed sed a 1 confidence exhibition of denee dence in foreign exchange Frene French It bonds made mado mad the th highest prices prices en sen en this year and In some som In- In In Instances stances have hav sold at the th highest t quotations for tor all 1111 time Dealings ere on a aery ery sery er large cil representing both speculative and In- In In estment busing Other European bonds than the th French were affected among these ere nere the new Hun Hun- Hungarian garian garlan loan which sold old well trell above the offering price The Th successful placing of or thi loan Its Itself is testimony testimony te tl mony to the th re ereal or of o In this country toward foreign so- so t ae Unlike tho the Austrian loan ot of a ear ago aro th there ther re was wae ra no guar guar- entee Ute by other powers power of ot the th Run Hun Hungar Hun car gar offering Ne N the thO bonds ier ere ero sold told and the tha market O o ocd cd ed better belter disposed toward them than was wa the tho th case cas In London Is h a a condition almost without prec- prec dent prec All thIs thi has hIlS the Iho bankers banker who expect to be b call call- called call called ed upon to sell seil a German loan to American Investor l le e tore GERMAN LO LOX ix X The German Grman loan Is expected no non by the th first of ot September it IC not No definite informs informs- tion information Is a available as to the th terms term I the ho coupon rate rale will bo be at least 7 per cent and may bo be b more inor nn and 1 tiie nhe offering price It Is 1 paled will wUl be b such uch as aa a to yle yield around depend 8 S per cent Much will de- de de pend upon Conditions pre at atthe the time Urn the th bond bonds are ar actually uttered German Ger It would teem seem that a Ocr Ocr- man juan loan mutt be made mado as aj aura aure lir 11 tle e as a the outstanding bonds bond ot of u ot or Hungary There has bLen some Home omo discuss discussion lOb of ol a n plO for tor redemption at a premium by annual there thero- II b gI 1 a speculative feature One ot of o the foreIgn bond foi fOl which no adequate cx- cx ex explanation is s at hand I li Is the th revival re ot of speculation In German covern overn govern govern- ment mark maric securities The Th buying 01 dels del's are said to havo hove come from abroad Certainly tho the Dawes Dawe plan makes no pros 1110 Islon ision for these thes the bond bonds It Ie the th German is I to the unfortunate lal ers erg of ot its Ite It war loans lean nothing I is of ot Such euch uch Intention here her |